Oil Recovery Falters As WTI Languishes In $20 Per Barrel Range

  • 23 Mar 2020


USD/JPY buyers have been held at the 110.19 resistance line as an evening star doji pattern forms as the first indication of a price reversal. As such the pair is now testing the 110.19 price level as sellers have returned after the break. Momentum indicators have upward trajectories.   






The Eurodollar appears to be undergoing a price reversal as a series of doji candles in recent trading represent a deceleration in the downtrend. Heavy selling pressure remains, however, buyers appear to have conviction. The 1.067 support level represents an obstacle for sellers. Momentum indicators have downward trajectories, yet RSI is testing oversold conditions.  





The GBP/USD pair is struggling to recover from a recent sell-off as sellers remain active in determining near-term price direction. Some uplift in price has been met with selling pressure. The tussle will continue with a reversal likely to be moderate. Momentum indicators are also undergoing a reversal, recovering from oversold conditions.





The USD/CHF pair has found a hurdle at the 0.983 resistance area, where sellers have returned. This price level has proven significant in the past both acting as a support level and more recently, a resistance area. If price action breaks this price line, the pair will most likely oscillate within a previous trading range. Momentum indicators have upward trajectories, yet RSI has fallen short of overbought territory. 





The USD/CAD rally appears to have stalled however sellers have not yet been able to dominate price action. An evening star doji pattern did not result in a sustained price reversal despite the signal of a momentum change towards bearish sentiment. Buyers have returned in early trading today. Momentum indicators remain in bullish territory however RSI has turned back towards the 70 resistance line.   





The Silver revival appears to be gaining traction with buyers beginning to gather momentum. Sellers are still active in the air which has the 14.30 resistance level in sight. Momentum indicators support bullish sentiment with RSI turning back towards the 30 support line after extending into oversold conditions. 





Gold buyers have returned to push price action beyond the 1485 resistance area where sellers have made a comeback. The metal may struggle to move beyond this price area in the absence of new fundamental news. The move does represent a return to a previous trading range where price action may stabilise. Momentum indicators remain in bearish territory although RSI is pulling away from oversold conditions.  






WTI prices remain at all-time lows testing the $20 per barrel range as the global pandemic shows no sign of slowing down. Despite some recovery attempts from buyers, sentiment remains bearish with rising selling pressure in recent trading. Momentum indicators have decelerated in bearish territory and RSI is testing the 30 support level.


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